Mechel Announces Consolidation Of The Group's Product Supplies Within Mechel-Trans

Mechel OAO, one of the leading Russian companies in the mining and metallurgical industry, has presented consolidation reports on the Group's supplies within its subsidiary Mechel.

This will allow the company to reduce overall transportation costs, improve supply logistics and create additional opportunities to increase revenue from product sales for the Group's enterprises that operate in a single production chain, ranging from raw materials to high value-added products.

Mechel-Trans will control rail deliveries of all the Group's products, including on gondola cars, covered wagons, containers, tanks, platform wagons, specialized vehicles, followed by transshipment in ports and delivery to end consumers in Russia and Europe, by sea and by land. ...

Previously, some of Mechel's enterprises entered into separate contracts with third-party transport companies to ship their products. Consolidation of cargo transportation by Mechel should reduce transportation costs by 3-10 percent, depending on the type of cargo. In 2013, Mechel-Trans dispatched about 42 million tons of cargo, including 16 million tons of exports.

Alexei Lebedev, CEO of Mechel's management company, said that “Consolidating all of Mechel's freight traffic into one transport operator, which is part of the Group's structure, will be a timely and logical measure that will help improve the management of our logistics supply chains.”

Mechel is an international mining and metals company employing over 70,000 people. Its products are sold to Europe, Asia, North and South America, Africa. The company unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electricity.